IBM has once again been the target of a lawsuit filed by Xinuos, alleging that the company used source code belonging to SCO in a Unix-based project. This legal dispute dates back to 2003, was reactivated in 2021, and after being closed in 2025 due to copyright expiration, was brought back to court in June 2026 by Xinuos, which contests the judge's interpretation.
Origins of the Dispute
The controversy dates back to 1998, when Santa Cruz Operation (SCO) and IBM established a collaboration aimed at developing a Unix implementation compatible with different types of processors. SCO already had a version of Unix geared towards x86 chips but sought to expand its capabilities. The result of this partnership was Project Monterey, which received support from Intel and initially focused on 64-bit Itanium processors.
The success of the project depended on combining source codes provided by IBM and SCO, with the latter contributing UnixWare operating system codes. However, the delay in the launch of Itanium processors negatively impacted Project Monterey. Subsequently, IBM noticed the rise of Linux and chose to invest in that ecosystem, resulting in IBM ending its participation in the initiative in 2001.
Legal Evolution and Corporate Changes
Given this scenario, SCO faced difficulties and sold its Unix operations to Caldera Systems, which later changed its name to SCO Group. This new entity sued IBM in 2003, accusing it of incorporating codes accessed during the development of Project Monterey into parts of the Linux source code.
Over the years, there have been various legal movements. In 2007, SCO Group suffered a significant setback when a US federal court recognized Novell as the legitimate owner of the rights to the Unix codes disputed by SCO. Novell, however, opted not to proceed against IBM, believing that no Unix code had been improperly implemented in Linux.
In 2011, SCO Group, in a delicate situation, was forced to sell its assets, which were acquired by a newly created company called UnXis, later known as Xinuos. For a time, Xinuos focused on providing support to customers who still used systems like UnixWare and launching versions of OpenServer, an operating system based on FreeBSD.
Judicial Return in 2021 and 2026
Even with statements from the Xinuos CEO that there would be no intention of returning to court, in 2021, months before the definitive closure of the 2003 case, the company decided to file a new lawsuit against IBM, along with Red Hat. Xinuos alleged that both companies acted to create a monopoly intended to stifle alternatives such as OpenServer itself, given that IBM had acquired Red Hat in 2019.
The case dragged on until 2025, at which point Xinuos dropped the monopoly accusation, apparently because it could not sustain its claims. Additionally, a New York judge ruled that the copyright infringement accusation, which remained active, had prescribed, as it referred to the action initiated in 2003. The case seemed settled, but on June 22, 2026, Xinuos returned to court, arguing that the judge in the 2025 decision had misinterpreted the allegations related to copyright infringement.
IBM maintained its stance of innocence regarding this new legal move, and currently, both corporations await the outcome of the new decision, although the prospect of a favorable result for Xinuos seems unlikely.